Asian shares rise after ECB rate cut

HONG KONG: Asian markets rose on Friday, boosted by a European Central Bank interest rate cut aimed at stimulating growth in the sluggish eurozone and a positive US jobless claims report.

Shanghai was up 1.68 percent, Hong Kong gained 0.82 percent, and Seoul was up 0.12 percent. Sydney was flat while Tokyo was closed for a public holiday.

On Wall Street, the S&P 500 reached a new all-time high Thursday after ECB policymakers shaved a quarter point off the key "refi" refinancing rate to a record low of 0.50 percent.

The index increased 0.94 percent, or 14.89 points, to reach 1,597.59 while the Dow gained 0.89 percent and the Nasdaq added 1.26 percent.

The widely expected ECB move is part of efforts to increase demand and encourage growth in the debt-stricken eurozone.

ECB chief Mario Draghi revealed that the decision to cut the rate was by no means unanimous among members of the policy-setting governing council, but vowed to keep rates low for as long as needed.

Draghi also hinted at more easing, telling a news conference: "We will look at all incoming data and stand ready to act if needed."

That suggestion sent the euro plummeting against the dollar but the single currency edged back in Asian trade Friday with the euro at $1.3073 from $1.3063 in New York Thursday and at 128.12 yen from 127.93 yen.